Plant-based protein foods see demand explosion, huge gains on Wall Street; but future might not be all smooth sailing

By Bruce Abbe

There is an explosion in consumer demand underway for plant-based protein foods. As Americans fire up their grills this Fourth of July, two leading meat alternative companies have developed burgers that taste much like popular animal meat burgers.

Something extraordinary is happening at Impossible Foods, maker of the “Impossible Burger” – they’re running low on supply for its’ high-end restaurant customers, and short of employees who make, pack and ship their products to more than 400 distributors.

Now that growth has caught the eye of Wall Street investors. Impossible Foods leading alternative burger competitor Beyond Meats, a pea protein-based burger manufacturer, has seen its stock more than double since it hit the stock exchange in May. Impossible Foods remains privately held, but that could change. Euromonitor predicts the meat substitute market will grow from $18.7 billion in 2018 to $22.9 billion in 2023. Barclays is forecasting even greater growth.

The rapid growth of the plant-based protein foods won’t be the sole province of these new start-ups for long. “Big Food” is about to put its big feet into the competitive game.

Nestle is entering the business in a big way, initially in Europe with a meatless burger supplied to McDonalds throughout Germany.

Major U.S. meat and poultry brands Tyson Foods and Perdue Farms have launched meat and vegetable blended products. There’s also speculation they may introduce their own versions similar to Impossible and Beyond.

Click here to read more detailed coverage from CNN Business.

Growth may not be all smooth-sailing

While the recent sharp rise in demand for plant-based protein alternative foods is undeniable, that road ahead may not be without some obstacles. Any popular trend will catch the eye of critics concerned with transparent communication to consumers.

A feature in the July 1 edition of the news web publication Quartz noted that recently some of the unique ingredients used in the plant-based meat products, and how they are processed, have come under scrutiny. Impossible Foods uses a genetically modified yeast to produce a key ingredient in its process that FDA questioned but later approved. So far any such potential concerns haven’t dented the sharp growth now capturing the attention of the market.

Trend to watch for SSGA Members

The explosion in plant-based protein foods is a trend Specialty Soya and Grains Alliance (SSGA) member companies should pay attention to – particularly soy food ingredient suppliers and edible pea and pulse sourcing companies – since soy, chickpeas and pulses are key ingredients in the new-fangled burger and foods craze.

Change is constant in the food business. Consumers today are ever more interested in where their food comes from, how it’s produced and how healthy it is. Cutting edge U.S. and international food companies may have a fresh interest in teaming up with SSGA’s unique roster of field-to-table, identity preserved grain and oilseed supply chain member companies.

Bruce Abbe is the Strategic Advisor for Trade and Transportation for SSGA. Reach Bruce at 952-253-6231 or drop him a line here.